REAL ESTATE MARKET UPDATE

Current real estate news, property listings, and sales. Your informative source for everything Real Estate in your area!

REAL ESTATE MARKET UPDATE

Current real estate news, property listings, and sales. Your informative source for everything Real Estate in your area!

Mortgage Rates Take a Major Hike - What Happened?

Mortgage loan rates are up almost 1% on average 30-year fixed loans, after their major increase on Tuesday. This is a larger upward move than we've seen since 2010, and may serve to temper the extreme activity we've seen in home sales lately.

There's no simple explanation for the rate increase, but experts agree that we can contribute it to investor reaction to the Fed's asset buying activity changes. In addition, the extended period of extremely low rates, that we have experienced cannot be maintained indefinitely, and balances itself out over time. Let's be thankful that the move from 3.25% average to 4% only equates to around $100 per month on most mortgage payments.

Overall, mortgage rates are still on the extremely low side of the spectrum (historically, 4% is an awesome mortgage rate to get!) and it's a great time to buy or sell. If you need a referral to a great loan officer, please let us know.

Please call right away if you or someone you know is interested in buying or selling a property!

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!

Signs of a Strong Recovery

The housing market is showing strong signs of recovery, experts agree. Home sales continue to rise in all areas, and are not enough to satisfy the demand of buyers, and home prices are steadily climbing.

The national median home price for existing sales is up an astounding 11% from last year, the National Association of REALTORS reports.

Most sellers who don't have to sell are waiting to list their properties as they see home prices rising. The number of short sale listings is down, and traditional sales are receiving multiple offers and selling quickly.

A large portion of buyers at median home prices continue to be investors and cash buyers (32% of closed sales in April), which makes getting an offer accepted difficult unless you are working with experienced Realtors like us.

It's a great time to buy or sell! Rates are still at record lows, and listings are receiving multiple offers. Whether you need to sell to relocate or just to make a move, please call us right away!

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!

Home Prices Up for 12 Months

With more great statistics supporting the recovery of the real estate market, the National Association of REALTORS® reported yesterday that home sales have been up for 20 consecutive months, and home prices have been up for 12 consecutive months.

NAR's chief economist, Lawrence Yun, attributes the continued improvement to job growth in the economy, low inventory, and low mortgage rates (which continue to historically low, even with the large fluctuations in underlying markets). As a side note, rental prices are rising more slowly that home prices, but we can expect to see those rise accordingly as home prices rise.

Properties for sale rose from January to February, but is still almost 20% below last year's levels, and finding a home and getting an offer accepted still remains a difficult challenge for inexperienced agents and buyers. Extremely low housing inventory may be one of the largest driving factors in increased home prices.

Overall, this news continues to support our opinion that it is still a great time to buy real estate, so please let me know if you are interested in buying or selling!

Check out the full NAR article here: http://www.realtor.org/news-releases/2013/03/existing-home-sales-and-prices-continue-to-rise-in-february.

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!

Foreclosure Numbers Continue to Drop

January ended with a 28% decline in foreclosure filings since January 2012, and the number of notice of defaults, auctions, and repossessed homes continues to fall. The housing market shows signs of recovery, and overall, the number of foreclosures is back down to levels similar to 2007.

It's my opinion that the lower foreclosure filings can be attributed to a number of factors, including the "Homeowner Bill of Rights", the recent legislation which requires banks to stop foreclosure proceedings if a borrower files for a loan modification.

Don't doubt that we will still see lots of short sales this year, which accounted for about 28% of total home sales last year, but that seems like good news as well, because it means that homeowners are finding a resolution to their mortgage debt problems and coming to an agreement with their mortgage lenders.

Overall, it still remains a great time to buy a home, with interest rates maintaining record low levels and housing prices low, but showing signs of improvement.

Foreclosure data is courtesy of RealtyTrac, Inc.

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!

How to Beat Cash Offers

A recent interview with GSDAR President Linda Lee inspired me to write a few tips for my clients about beating cash offers in multiple-offer situations.

Many of my buyers find themselves in multiple-offer situations these days, also called "bidding wars". I've had a lot of success getting our clients' offers accepted, so here are some tips:

Choose the Right REALTOR

We go the extra mile to connect with the listing agent. Sometimes all it takes is an extra phone call, email, or compliment to the listing agent. We are experts at putting our (and your) best foot forward, and listing agents always want to choose an offer represented by a REALTOR they know will be easy to work with throughout the transaction. Work with us and expect success!

Get Personal

It benefits you to be presented as a real family or person. Allow some personal details to be conveyed in the offer, like a short description of what you do for a living, or how this house is perfect for your family size. Many of the competing cash offers will be from investors who have very little personal interest in the property. Sellers like to know they are selling to people, not companies.

Show Commitment to the Area

We like to explain on your offer why this area is perfect for you. Maybe it is closer to family, school, or work, close to your church, or near a place of nostalgia. Sellers like to see why you are committed to buying their property and sticking with it until the end of the deal.

Have a Recognized Loan Pre-Approval

Your pre-approval must be bullet-proof! Get it from a nationally recognized lender, or one of our preferred brokers. Make sure your loan officer details the amount you are financed for, including some wiggle room, and what paperwork has already been reviewed. Sellers like knowing you have completed most of the loan process before making an offer.

Don't get Discouraged!

Its a tough market out there, and you might not get the first property you make an offer on. Sometimes your offer is reviewed by bank employees or estate administrators who only have an interest in their bottom line. Don't lose hope! The perfect property is out there for you.

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!

Short Sale Tax Relief Extended Through 2013

The Mortgage Interest Deduction and the Mortgage Debt Forgiveness Act survived last minute budget cuts, and will extend through 2013. Both laws were considered by Congress and the President as they looked for ways to cut spending for 2013. Discontinuing the Mortgage Interest Deduction in particular would have been detrimental to the housing market, and would have cost new and existing homeowners hundreds of dollars per month.

The extensions mean that homeowners can continue to deduct mortgage interest and PMI on their primary  home (and one secondary home), and that mortgage debt forgiven by banks during short sales will not be taxed federally. This information is not tax advice, just a summary of legislation. If you are interested in learning more, please contact me.

Real Estate continues to thrive, and with historically low rates it is a great time to buy or invest!

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!

Mortgage Rates Improve with Fiscal Cliff Rumors

Mortgage rates increased slightly on Thursday, then ended the week in the low 3% range, with many prominent lenders closing loans as low as 3.125% on 30 year fixed mortgages. These rates represent historic lows, making home ownership extremely affordable right now.

The slight dip in rates seem to be attributed to increasing pressure on lawmakers to agree on tax laws for 2013, aimed at averting the rumored "Fiscal Cliff". The January 1st deadline for tax law approval is approaching fast, and any news about this topic has affected interest rates as the stock market reacts to investor confidence.

This means that there is absolutely no reason to wait if you are thinking of buying, selling, or refinancing property. The risks of waiting for better rates outweigh the benefit of locking in a rate right now. Many of our clients have been literally saving thousands of dollars in mortgage interest.

Erica Bass, Realtor

If you, or someone you know is interested in buying or selling property, please call right away!